Jobs boost for Sheffield as finance is secured to regenerate former B&Q warehouse and develop industrial units

The South Yorkshire Pension Fund has provided an £11.75m loan to BGF4 (Sheff) LLP to fund the redevelopment of an 11-acre site on Greenland Road in Sheffield to create 191,150 sq ft of industrial and logistics space.

The loan will part fund the site acquisition, as well as contributing to the regeneration of an existing former B&Q warehouse and developing 58,000 sq ft of new industrial units.

The £80m South Yorkshire Pension Fund was launched in 2019, following the success of the SCR Jessica Fund, to support regional investment in South Yorkshire and the ongoing economic growth of the region.

Both funds are managed by CBRE’s Investment Advisory team, part of CBRE Capital Advisors. BGF4 (Sheff) LLP is a wholly owned SPV of Barwood Regional Property Growth Fund IV LP.

George Graham, Director of the South Yorkshire Pensions Authority said: “We are pleased to be able to finance the redevelopment of such a prominent site in Sheffield bringing buildings which would otherwise be demolished back into use and creating new employment opportunities.

“This shows that we can achieve the financial objectives of the pension fund which must remain our primary focus while achieving wider benefits for our communities.”

Will Church, Senior Director, Investment Advisory, CBRE commented: “CBRE’s recent research shows that there is rising demand for vacant logistics space in the UK, with a record low vacancy rate of 1.53% recorded in Q3 2021, driven primarily by online retail.

“Consequently, this regeneration project is being delivered at a time when the market conditions are very favorable and Sheffield has been a primary beneficiary as a result of its location and connectivity.

He added: “Additionally, the new development will significantly contribute to the socio-economic growth of the region, meeting the fund’s objectives and regenerating a previously obsolete brownfield site.”

Graham Wood, Barwood Capital’s CFO said: “We are very pleased to have secured development finance from the South Yorkshire Pension Fund for this exciting opportunity and are particularly pleased to have partnered with a lender that shares our commitment to regional investment and regeneration.”